Rate hike, rent, and GTA property price (Con't) Snapshot of Toronto Property Market

©Copyright by top real estate agent in Toronto/GTA, senior broker, Daisy Huang

In the last episode, we talked about “If the interest rate rises to 20%, what will happen to GTA property price?”. We said that the cooling-off period of the real estate market is the most suitable for “home hunting”. In this episode, Daisy Huang wants to share some snapshots of the Greater Toronto market based on June data, hoping that while we discuss the impact of inflation and interest rate hikes on home prices, we can also bring you more sense of reality, increase the visibility of the GTA marketplace and capture opportunities.

The following are 5 snapshots of GTA real estate market by “Daisy Realty List®”. It should be disclaimed that the data is based on a snapshot of one month of June, the ranking will deviate from the annual average ranking. For more detailed and real-time market dynamics, please contact Daisy Huang.

Let's first look at the [Snapshot of the average price of single-family houses in the Greater Toronto Area in June 2022]. For a long time, the highest ranks of average price of single-family houses in the Greater Toronto Area has been dominated by the towns of King, Oakville and Richmond Hill. In June, Richmond Hill's top three spot was replaced by Toronto's Central District. (The darker the color in the map, the higher the average price)

The following 3D picture is an overview of the average monthly rent of detached houses in some cities (regions) in Greater Toronto in June 2022

For Condo, Daisy Huang brings you [A snapshot of the average price of Condo apartments in Toronto in June 2022]. The average price of condo apartments in Toronto is generally in the middle of the traditional luxury residential areas C02, C09, C12 and C04 in the midtown area. It includes Forest Hill, Bridle Path, Rosedale, and many famous private schools. Daisy Huang has another article on private/independent schools in Toronto midtown. In June, the top three highest average price of condos in Toronto sit with district C09, C02, and C04. (The darker the color in the map, the higher the average price)

In the last episode, we said that since the rate hike in recent months, rents in the Greater Toronto Area have risen sharply for several consecutive months. The rents of condo apartments in Toronto have risen even more sharply. The [Snapshot of the Average Monthly Rent of Condo Apartments in Toronto in June 2022] by Daisy Huang shows that the C04, C09, and C02 districts have the top three rents, which match the average price of the top three. (The darker the color in the map, the higher the rent)

Let's look at another key ratio—the price/rent ratio. From the figure below, we can see that the highest ratio in June was the C04 area of ​​North Forest Hill in Toronto midtown, while the lowest price/rent ratio was Toronto W09 area in the middle of Etobicoke. (The darker the color in the map, the higher the price/rent ratio)

In the end, Daisy would still like to conclude with the summary from the previous episode: A healthy and balanced market is the foundation of Toronto's long-term health in real estate. Whether buying or selling, smart participants need to have a good sense of reality, strategic awareness, and professional decision-making and execution capabilities…

• In a high inflation environment, there is basically no room for a sharp drop in house prices, whether from the perspective of new house construction costs or pure wealth preservation
• Higher interest rates do lead to lower purchasing power, but at the same time property is also an effective asset against currency depreciation
• The cooling-off period of a property market is the best time to “hunt” for a good home at the best price, but it requires insight, professionalism, and decisiveness
• Despite rising interest rates, current borrowing rates remain below 8% inflation
• During the historically high interest rate years, house prices have not fallen sharply, but have continued to rise steadily
• Positive mindset is the fundamental driving force for the survival and development of human beings from primitive society to the present. From the journey of history, all shorts are finally swallowed by longs

Thank you for your time, see you at next episode.

Originally written and all copyright© reserved by Daisy Huang www.daisyrealty.ca , top real estate agent in Toronto and GTA, senior broker. High Value. Delivered.

Top Producer in GTA Canada

Diamond and Platinum Award Winner

Hall of Fame for Real Estate Professionals

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